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Category: Sun City Real Estate (page 7 of 8)

October 11, 2008

If you have cash or can qualify for a mortgage, this could be the ideal time to grab a bargain-priced home in the Phoenix area

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link).

 
If you have cash or can qualify for a mortgage, this could be the ideal time to grab a bargain-priced home in the Phoenix area

The Phoenix area is hosting a wave of real estate investors like we haven’t seen since 2005. Unlike the novices who came here during the boom, these are experienced landlords. They’re here now because lender-owned homes are selling for bargain-basement prices.

They’re not alone. Savvy home-buyers are scooping up bargains, too, especially first-time homeowners. Interest rates are still attractive — even if the homes themselves are less appealing.

Interestingly, over the last couple of weeks, many of the lowest priced homes have seemed to evaporate. I’m guessing that October is going to be a banner month for closed transactions. Yes, most of these will be foreclosed homes, but buyers are performing the liquidator function, restoring the value of underperforming assets.

With so many homes selling, are we nearing a bottom in the Phoenix market? It’s plausible, if the number of sales meets or exceeds the number of newly-listed homes to be sold. But, even now, around 7,500 homes a month are entering the foreclosure process.

It could be a long time before that inventory is absorbed. And if it comes onto the market faster than buyers can snap it up, prices will continue to decline.

Visualize the real estate market as a pipeline. The home that gets a foreclosure notice today won’t hit the lender-owned market for three to six months. Are there enough investors and other buyers to snap up record numbers of homes, month-after-month, for the next two years — or longer?

The answer to that question is yes — if the price is right. If the demand for low-priced homes already exceeds the supply in the pipeline, prices will stabilize or even start to rise. If not, lenders will be forced to cut prices until buyers find them impossible to resist.

It’s an awful time if you have lost your home, and it’s not great if you are living in a home you cannot sell profitably. But if you have cash or can qualify for a mortgage, this is an ideal time to snag a bargain-priced home in Phoenix.

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August 31, 2008

With its new iPhone application, Trulia.com is taking on-line real estate search to the streets

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link). There is a fuller review of this new technology here.

 
With its new iPhone application, Trulia.com is taking on-line real estate search to the streets

So who is winning the Realty.bot race, Trulia.com or Zillow.com? Your guess is as good as anyone’s, but this week marks a decisive change in the game: Trulia just released an iPhone application.

Trulia Mobile will offer a limited set of location-based searches from Apple’s iPhone, from an array of other smartphones and from Dash Navigation GPS devices. The user-experience will differ by device, but the design premise is based on location-sensitivity: Your iPhone always knows where you are, so it can interact with Trulia’s file servers to show you a list of nearby listings or open houses. You can get a detailed summary for each home on your list, and you can then email the listing to a friend, contact the listing agent directly or map the home so that you can hop over for a quick peek.

It’s hard to argue with the design premise: If people are going to go out house-hunting on their own, whether they are really looking for a house or simply touring open houses for decorating ideas, why not use the location-sensing power of modern electronics to hook them into Trulia’s listings database?

The ability to contact the listing agent plausibly increases the likelihood of dual agency transactions, but the fact of life is that many, many people are at least starting their home search without the advice of a buyer’s agent.

But here’s the bonus that popped out at me when I heard about Trulia’s iPhone application: Listing agents who want to compete for mobile-empowered buyers need to get their listings into Trulia and they need to keep their open house schedules up to date. I like anything that makes listers more diligent in their duties to their clients.

The iPhone application is slick and useful as written, this because “data is the new Intel-inside” and Trulia has a rich store of data to draw upon. The usual caveats about opt-in versus MLS listings apply, along with concerns about decay among voluntarily-maintained listings. But, all that notwithstanding: Trulia’s mobile-computing initiative is cool.

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August 2, 2008

New FlexMLS system is a bold stride into the twenty-first century for Phoenix-area Multiple Listings Service

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link).

 
New FlexMLS system is a bold stride into the twenty-first century for Phoenix-area Multiple Listings Service

Metropolitan Phoenix got a brand new MLS system this week. MLS is the Multiple Listings Service, the system by which Realtors share their listings with one another. Until this week, the Arizona Regional Multiple Listings Service had been using a computing system called Tempo to share listings. As of this Monday just past, we have switched to the FlexMLS system.

Had you guessed that something had changed? If your Realtor has been sending you listings from a saved search, or if you had been receiving updates to a Tempo Gateway, all that stopped on Monday morning. Chances are your agent has spent much of this week rewriting searches and reestablishing gateways. The FlexMLS system is more robust than anything we’ve had before, but it’s also quite a bit more complicated. It may take a while before things get back to normal.

So why make the switch? For one very good reason, to tap into that much more robust technology. Tempo permitted a crude kind of map-based search, but FlexMLS allows you to select houses from within multiple non-contiguous irregular polygons. So, as an example, I can search for homes that are either within walking distance of Apollo High School or within walking distance of Valley Metro bus lines servicing Apollo High School.

There’s more: The FlexMLS pricing software is comparable to the tools appraisers use. Realtors will have to stretch themselves to learn how to tap this power, but our Comparative Market Analyses are going to be painstakingly accurate.

But not without some growing pains. ARMLS is by far the largest MLS system FlexMLS has taken on so far. This first week has been a trial for the North Dakota company — a strain on their servers, and, no doubt, a strain on their tech support staff as well.

And workaday Realtors are sharing the pain. No doubt many are grumbling, “If it ain’t broke, don’t fix it.” But FlexMLS is a bold stride into the twenty-first century for ARMLS. This transition may not be fun, but it will be a boon to everyone in the long run.

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June 14, 2008

Price matters — but so does everything else: When buyers come to see your home, they’re looking for reasons to reject it, not to buy it

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link).

 
Price matters — but so does everything else: When buyers come to see your home, they’re looking for reasons to reject it, not to buy it

If price matters more than anything else in the sale of a home, why bother to clean, repair, stage and market the property for sale?

In a buyer’s market, if a home is priced above its market value, it probably will not show. If it doesn’t show, it can’t sell, and this by itself is all the argument anyone should need to price a home to the current market.

The corollary proposition is that, if your home is properly priced, it should get frequent showings.

So the battle is won, right? All you had to do was price your home to the current market, and you attracted the attention of buyers. Victory is at hand.

Not quite.

Your home is showing, and that’s good. But if it is dirty, if there are obvious repair issues, if the space is cluttered and confusing, if no one has worked to point out why it’s such a good buy — other houses will sell and yours will languish on the market.

As long as you’re priced right — and price can be a moving target in this market — you’ll get showings. But if your home is not a better value than the other houses your buyers are seeing, they’ll buy those homes instead.

That’s exactly what you would do in their place, isn’t it? When you’re picking through the melons at the grocery, you aren’t looking for the ones that are bruised and shopped over, unsightly and unappetizing. Why would you expect buyers to buy a property that you would pass on in a heartbeat, if you were in their shoes?

When buyers come to see your home, they aren’t looking for reasons to buy it. They’re looking for reasons to reject it, so they can move on to the next home. The one they buy will be the one that raises the fewest objections, for the money. If you want that money, you have to do everything you can to take away your buyers’ objections — before they think to raise them.

Not willing to do that? It’s not a problem. Just cut your price.

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April 20, 2008

Will Realtors be disintermediated by on-line tools? Probably not, but tech-savvy Realtors will supplant those who do not adapt

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link):

 
Will Realtors be disintermediated by on-line tools? Probably not, but tech-savvy Realtors will supplant those who do not adapt

The big news in real estate is the market, of course. My view is that the American economy is much stronger and more resilient than you might guess from day-to-day reports.

But the other big story in real estate is the idea of “disintermediation” — replacing Realtors with some combination of do-it-yourself effort and hi-tech tools. The stock retort to this notion — and I have made it myself — is that people will never buy homes like they buy books on Amazon.

Perhaps so. But I lived through the desktop revolution in printing, so I have a different take about the dreaded word disintermediation.

If the triumphant yelp is that some travel agents and some stockbrokers still have jobs, I will point out that some blacksmiths still have jobs, too. Horses still need shoes. That much is beside the point.

Here’s my take on the matter: Don’t think in terms of disintermediation. Use the word “supplantation” instead. In industry after industry, old techniques are being supplanted by new ideas. More importantly, the old technicians are being supplanted by new ones.

This is not a necessary consequence, but it often works out that the “old hands” don’t want to make the change to the new ways of doing business. Even if they do, the “first-mover advantage” can be too great to overcome.

The same goes for everything — most especially real estate. Realtors who are not all the way onboard with the way business will be done in the future will be left behind at the station.

A real estate transaction is so complex that most people will continue to want professional advice — even as they handle many of the simpler functions Realtors might have done in the past. The work we do will be superficially similar to the work others have done in the past — but those others won’t be doing it any longer.

Will they have been disintermediated? Not if you insist that they haven’t. But they will have been well and truly supplanted.

When will that happen? Ask a blacksmith — if you can find one.

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March 29, 2008

Back to the future in North Central Phoenix? In the Missouri corridor, 1322 East Vermont Avenue is as cool as the Phoenix of the fifties

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Sun City Real Estate Broker

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Phoenix is the best-named city in the wild and wooly West. We are the Thunderbird, rising always anew from our ashes, a constant state of reinvention. Surging ever outward — and lately even upward — we are too much the City of Tomorrow ever to spare a thought for the city we were yesterday.

And yet…

That city we were yesterday had its charms… Mostly we recall them through the good offices of PBS Channel 8. At fund-raising time, we get to catch a few brief glimpses of the Phoenix we paved over decades ago. A Phoenix where kids played in the street and swam in each other’s backyard pools. Where their older brothers and sisters cruised Central Avenue — ragtops down and the radios all tuned to the same station. Between the dusty little nineteenth-century town of Phoenix and the vast megalopolis that Phoenix has become, there was a shady oasis in the desert where prosperous people perfected the fine art of suburban living.

Here’s the good news: It’s still there. Everything changes in Phoenix, it seems like every day. But North Central Phoenix endures. In the late forties, through the fifties and early sixties, as Phoenix was surging outward in its first great growth spurts, some very wise people built big, sturdy homes right in the heart of everything. On both sides of Central, between the Canals, North Central Phoenix took root in the desert soil — and took root in the hearts of the people who built it.

Land that had been irrigated orange groves became rich irrigated lawns instead. And the trees that grew from that water spread a thick canopy of shade over the land. And houses made of concrete block were built one-by-one — modern and roomy, with high-ceilings and wide-open sight lines. And big back yards. And pools and barbecues and basketball hoops and volleyball nets.

And here’s the even better news: You can have a house just like that. There aren’t very many to be had, and North Central can be a pricey neighborhood. But the house we’re talking about, 1322 East Vermont Avenue, in the Madison United Neighborhood along the Missouri Avenue corridor, is everything you could wish for in a mid-century modern ranch home in North Central Phoenix — at a price you can afford.

My job is to sell houses — you didn’t know? — but we don’t sell homes we don’t love. We want to understand the houses we represent like works of art, each one unique and unrepeatable. The web site for this home features hundreds of photos, and we even went so far as to build a virtual coffee table book for this property, so that you can send it off to friends and family.

There’s so much more I could talk about, but that’s why we built such an elaborate web site for this home, so that you can see absolutely everything there is to know about it. We’ve always built an interactive floorplan into our web sites, but for 1322 East Vermont, for the first time, we’ve also built in a virtual remodeling feature. I happen to think that kitchen rocks the way it is, but if you’d like to try a different look, the virtual remodeling software makes it easy.

I could go on all day, but — let’s face it — a house either sells itself or it doesn’t. What we have is a spacious, well-kept mid-century modern ranch home on a big irrigated lot in the Missouri Avenue corridor of North Central Phoenix. You’re minutes from Downtown, seconds from the Biltmore. If you’re in love with an older Phoenix, or with that flaming Thunderbird that was always born just yesterday, this home is not for you. But if you long for that Phoenix of the fifties, that cool and comfortable suburban lifestyle perfected by our parents — give me a call. You don’t have to wait around for the fund-raisers on Channel 8. That shady oasis of a Phoenix still exists — and it can be yours…

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March 28, 2008

Who says we sell nothing but half-million dollar homes? 3527 West Quail Avenue in Glendale, AZ, can be yours for $60,000

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Sun City Real Estate Broker

Author website

We list more than our share of pricey homes, that’s a fact. I sometimes list all over the Valley for my investor clients, but Cathleen Collins has made a specialty — and an artform — out of listing remarkable homes: Historic, architecturally-distinctive and mid-century modern luxury homes. We’re often found in that half-million-and-up price range — and that’s a comfortable place for us to exercise the kind of marketing tools we like to deploy when we list a home for sale.

So what does it mean when we list a double-wide mobile-home in last rustic neighborhood in Glendale? The newspapers are full of starving Realtor stories. Are we so desperate for work that we’re listing for ten cents on our usual dollar?

Not quite. The listing itself is family — Cathleen’s sister’s husband’s mother. But we know we can do a better job on a home like this than the average mobile-home lister. There are things we would normally do that just don’t make sense for a home at this price. But building a web site for the home makes perfect sense to us.

The home is what it is, and we can’t puff it to be something else. The structure needs help, and our listing copy acknowledges this fact. But the land and the surrounding area are incomparable, some of the last bits of desert available this close to town. And these are the kinds of ideas we can bring out in the web site and on the home’s color flyers.

In some ways our listing this home is kind of funny. For example, the house is in rough-enough shape that we took no photos at all of the interior of the home, where normally we would take hundreds. But this house was a sweet lady’s dream home, and it is her financial nest egg even now. If we can help her get the most money she can for her home — that’s our job, a job we love to do regardless of the house we’re working with or its sales price.

But take careful note: The purpose of real estate marketing is to sell real estate. If you’re interested in picking up a quarter-acre of raw desert at a bargain price, take a look at the web site for 3527 West Quail Avenue in Glendale, AZ — and then give me a call. This property is primed for its next chapter, and you could be its author.

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March 24, 2008

In the Metropolitan Phoenix real estate market, our long, slow slide in home prices is finally encountering demand

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link):

 
In the Metropolitan Phoenix real estate market, our long, slow slide in home prices is finally encountering demand

If you’ve been looking for the bottom of the Phoenix real estate market, it might well be upon us.

The world beyond our control — Washington and Wall Street — is so volatile right now that it’s hard for anyone to make plans.

The Federal Reserve Bank is determined to keep markets liquid, so its own interest rates are heading back toward record lows. The investment banks that brokered the mortgage-backed securities that made sub-prime loans possible are in turmoil. Meanwhile, Congress is desperate to do something — which will almost certainly make things worse.

The interesting thing about all that chaos is that it seems to be isolated to the real estate market. The larger economy is growing so fast that the twitterpated monetary policies of the Fed seem not to have had much of an impact.

That’s a good thing, and let’s hope things stay that way.

Meanwhile, in the world we have some control over — the local real estate market in Metropolitan Phoenix — our long, slow slide in prices is finally encountering demand.

Because so many people wanted to buy houses in Phoenix, our builders gleefully over-built the Valley. This caused the glut of inventory we have been trying to absorb over the past nine quarters.

Many of the resale homes that have languished on the market are by now short sales or have been taken back by the bank. Lenders don’t want to own houses, so they’re cutting prices until the homes get sold.

At the same time, our reliable inflow of population, along with investors and second-home buyers, is there to absorb these newly-affordable homes. The snow belt just got belted with its worst winter in memory, which will bring even more newcomers to Phoenix.

It could be we’ll be back to normal inventory levels fairly soon. The bad news? If your home is for sale, the price it will sell for right now is probably quite a bit lower than you think it should be. If you don’t have to move now, you might be better off staying put for a year or two.

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March 11, 2008

How do you get visitors to come to your home’s custom weblog? Shoe leather works well. Search engines? Not so much…

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link):

 
How do you get visitors to come to your home’s custom weblog? Shoe leather works well. Search engines? Not so much…

Okay, so you’ve built a custom weblog to help sell your home, and you’ve dressed it up with photos, a map, a floorplan — every bit of content you could think of. Now what?

Your home now has a twenty-four-hour salesperson on the internet. How do you go about getting potential buyers to visit your blog?

Perhaps surprisingly, the answer is not search engines. For one thing, your site is brand new. The search engines don’t even know it exists. Even if you manage to get indexed, you won’t have the kind of popularity to bring you to the top of search results for your keywords.

But there is an even more compelling reason why search engines won’t be much help to you: Visitors brought in by search engines are very loosely motivated. Many will have been looking for something else entirely, so they will bounce right back off your site in seconds flat.

Your objective in promoting your weblog is to target people who are motivated to buy your home — or who know someone who is motivated to buy your home. Your job is not to broadcast your appeal to everyone but to narrowcast to just those people who can do you the most good.

You’ll put notices about your weblog anywhere online that you can — Zillow.com, Trulia.com, CraigsList.com, local weblogs supporting nearby schools, little league teams, etc. But your primary promotional strategy is going to be offline — person to person.

We print business card-sized promotional pieces to advertise our open houses. These are distributed to every house in the neighborhood, since the neighbors may know someone who wants to live nearby.

During the school day, there will be more than 100 cars in the school parking lot, most of them driven there from out of the neighborhood. Some of those folks are sick of commuting.

Most local retailers will have some kind of bulletin board. Your cards belong there.

Your buyers probably won’t find your home on a search engine. But if you manage your promotion right, your house will be sold long before that matters.

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March 7, 2008

A thoughtful reminder to the home-schooling parents of California: Arizona is the most home-schooling-friendly state in the west, our homes are affordable, our weather is delightful and our state government pretty much minds its own business

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Sun City Real Estate Broker

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Unbelievably, home-schooling has been outlawed in California. We would love it if California home-schoolers were to call us for help in relocating to Arizona. But however you get here — get here. You have a right to school your own — and Arizona knows it.

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February 25, 2008

A custom weblog can be your home’s 24-hour real estate salesperson on the world-wide web

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link):

 
A custom weblog can be your home’s 24-hour real estate salesperson on the world-wide web

I have an unshakable faith in the three P’s of home marketing — Price, Preparation and Presentation.

If the home is priced above its value to the buyer it will not sell in this market — it probably won’t even show.

If it is not well-prepared — repaired, staged, cleaned — to the condition implied by the price, it will not sell even if it does show.

Presentation is your Realtor’s job — or yours if you’re trying to sell without representation. I don’t have space to go into a full-blown marketing plan, but here’s an idea that can make a big difference for very little cost:

Give your home a blog.

Every home for sale should have its own web site. What makes a weblog useful and practical is that weblogging software is so easy to use. And the price to get started? Nothing.

Sites like WordPress.com or Blogger.com will let you set up a blog on a subdomain — an address like 123MulberrySt.WordPress.com — for free. Or you can buy your own domain — 123MulberrySt.com — for less than ten bucks a year. You can host your own domain for a few dollars a month, but using your weblog provider’s hosted option will work just as well.

What do you want for content? Photos — and lots of them. Good pictures of clean, well-lit rooms sell houses. Your text should be just-the-facts, nothing overtly promotional. Not only can people see through hype, it turns them off.

With a weblog, you can document your house room by room — or by the benefits to be realized from the home’s features and amenities.

Best of all, you’ll have a 24-hour salesperson working for you on the internet. Put your blog’s address on your flyers, in any advertising you do, in your Craigslist open house notices, on Zillow.com and Trulia.com. The more you can promote your blog, the more traffic it will draw.

You still have to be priced right. You still have to be prepared right. But a custom weblog for your home could be a key element in your home’s presentation to the marketplace.

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February 19, 2008

Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link):

 
Down Payment Assistance is another creative financing option you can deploy to make sure yours is the home that sells

It’s a hard world for home sellers right now. It’s possible that things are slowly getting better, but a qualified buyer still has at least ten suitable homes to choose from.

Does this mean you might sell now, or you might sell a little later? Probably not.

Does it mean you might sell for your price, or you might have to accept a little less? Probably not.

What it means is that, if your home is not the one that answers most of a potential buyer’s needs, it probably won’t sell at all in this market.

We’ve talked before about being the most appealing — best priced, best prepared, best presented. These are the homes that will sell to the best qualified buyers — while the near-misses languish month-after-month.

We’ve talked about using seller-financing to help less-qualified buyers. Carrying back a note for a third mortgage entails a risk of loss, but, again, that marginal difference can be moot if the house wouldn’t sell otherwise, or if it sells months later for a much lower price.

There is another creative financing avenue you can pursue, although this one comes with an assured loss to the seller. It’s called Down Payment Assistance. Through programs like AmeriDream or Nehemiah, sellers contribute a portion of the sales price to serve as down payment or closing cost assistance to the buyers, who receive those funds at close of escrow as a grant.

This is what I call Psycho Lender Math at its worst, since the lender is permitting the sellers to discount the home by a huge percentage while pretending that that same pile of money is coming to the buyers as a grant from a neutral third party.

The house still has to appraise for the full purchase price, so it really is just a seller discount disguised as a shell game — but if it means your house sells while all the others languish, you still might be ahead of the game.

These programs require advance legwork, so talk to your Realtor about what you need to do to participate. Note also that both programs are slated to be discontinued and are being kept alive, for now, by court intervention. If you do initiate a transaction involving Down Payment Assistance, it probably makes sense to act fast.

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February 14, 2008

Choosing second-best could get you the best possible home

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link):

 
Choosing second-best could get you the best possible home

Last week we talked about how, even with so many unsold properties, multiple buyers can somehow land simultaneously on the one property on the market that approaches perfection.

This is perfectly natural human behavior, if you think about it. Who hasn’t thumped a melon? Who hasn’t reached into the back of the cooler for the fresher milk? Who buys the brown ground beef when there’s redder meat available. We were not just born to shop, we will perish if we don’t learn to shop wisely and well.

It’s no different for houses. You have a certain amount of money available, and a certain selection available to you for that money. It’s completely natural that you would shop until you find the home that is far and away better than your other choices.

And it’s perfectly natural that other buyers would come to the same evaluation of the available inventory. They wold have bought the same melon as you, except you got there first.

But there’s still an important difference. A good melon is as good as it’s going to get, and a bad melon cannot get better. But a house can almost always be improved.

Here’s a melon-improvement strategy for financially-savvy home shoppers.

That home you fell in love with is almost certainly a production home — a tract home. Yes, it’s in great shape, and it’s staged to perfection. But guess what? There are three more almost exactly like it for sale on the same street. They’re not as clean, not as nicely-decorated, not as well-marketed — but that works to your advantage.

The difference between your dream home and what looks to you like a bad melon is really just a matter of money. If you put that money into the bad melon, it will be as good or better than your dream home.

So, rather than competing for the best house and paying top dollar, you can use it as leverage to get a lower price and seller concessions on a home that could be even more ideal for you — after you do a little work.

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February 1, 2008

If you’ve finally found your dream home — don’t dawdle

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link):

 
If you’ve finally found your dream home — don’t dawdle

Here’s a paradox for the ages: It’s been a strong buyers market for more than two years — and yet buyers still can’t afford to be lax about the houses they love.

How’s that? In our recent seller’s market, sellers were completely indifferent to home-buyers — as a matter of studied strategy. “We might consider your offer,” they seemed to say, “but not today. We’re letting the offers pile up until Monday or Tuesday, then we’ll take a look at them all at the same time.”

Why can’t buyers in this market approach sellers with the same bland indifference?

They can — provided they’re willing to buy just any home.

In a seller’s market, qualified buyers are essentially a fungible quantity. Each one is simply a pile of money in the seller’s eyes — some larger, some smaller, some sooner, some later. Allowing for risks and opportunities, one is as good as another.

Not so for buyers. Houses are inherently non-fungible — each one is unique in location, appearance, construction, condition, amenities and lifestyle factors. Even with so many homes for sale right now, it can be a challenge for buyers to find even one house they are completely committed to buying.

My take: If you want to get the best possible deal, pick three homes, not one, and pit the sellers against each other.

But buyers don’t do this. Instead, they look at dozens of sub-standard offerings, and then focus all of their attention on the one house they can find that is priced right, repaired and staged right, marketed right.

And guess what? Of all the houses these buyers will have seen, this is the one for which there is competition. The factors that appeal to them also appeal to the other folks out there looking for homes right now. The dirty or neglected or over-priced houses attract no offers, where the few that are truly market-ready can draw multiple contracts within a few days of being listed.

The lesson to take away: If you really love the home, don’t dawdle. Chances are, someone else loves it, too.

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January 27, 2008

Selling your home in a declining market? The race is to the swift

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Sun City Real Estate Broker

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This is my column for this week from the Arizona Republic (permanent link):

 
Selling your home in a declining market? The race is to the swift

If you’re chasing the market down, chances are you’ll never catch it. The trick to pricing a home for sale is to race the market down.

How’s that again? We’re in a declining market, that’s understood. It won’t be this way forever, but prices could continue their slow leak for quite a while longer.

What that means is that, whatever price you might get for your home today, you will probably get still less a month from now or three months from now.

Hence, you need to make a difficult decision.

If you don’t actually need to sell right now, you might do better putting your move off for two or three years.

But suppose instead that you do need to sell your house right now. You have a job offer out of town. You have a big deposit on a new home. You’re expecting triplets. What now?

Even in the best of markets, sellers can have an inflated idea of the value of their homes. This has certainly been the case in the two years since the market turned. We’ve had a glut of inventory, but much of that has been overpriced inventory.

Typically, the seller starts out with the price too high, then tries to chase the market down with a series of price reductions — usually too little and too late.

If your house is not showing, it cannot sell. But if it isn’t showing, this almost always means it is overpriced. The trick to getting it sold now is to price it under the competitive listings.

The natural impetus, in the face of advice like this, is to say, “I don’t want to give my house away!”

Who can blame you for feeling that way? But the important question is, “Would you rather hang onto it for a few more months, and then sell it for even less — if you are able to sell it at all?”

Racing the market down can be a painful decision. But the pain is likely to be a lot worse if you continue to try to chase the market down instead.

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